Expert: Arthur Naman - 3/28/2010

Question
My wife has a solo proprieter business and a part time employment. She contributed 12500 to a 403b plan with her employer for 2009. her income for solo business is about 80,000 for 2009. She needs to figure out how much can she contribute to solo 401K account for 2009. Employee deferral portion limit for 401K being 16,500, can she contribute anothe 16,500 or only 4000 ( 16500-12500) ??

Thank you for your time and expertise.

anil

Answer
Please review the instructions for form 1040 line 28 -- Deduction for contributions to SEP, SIMPLE, and qualified pension plans. In addition, please review IRS Pub 560.

Both these are available from links at www.irs.gov.

If after reading this and you are still not clear, please ask a follow-up. In addition, there is an income tax section of AllExperts.

The references provided are for an owner of a sole proprietorship.

I reviewed briefly, info on the Web. I could not quickly find limits on a 40(k) contribution when also making contributions fo a 403(b). I am presuming IRS Pub referenced above will provide that information.

If after reading the information available and you still have questions, please ask a follo-up and I can do mre research to assist you.

I should also mention, that any tax software you might use for 2009 should make this contribution. In addition, you might ask the tax preparation professional you normally use, if you have someone prepare your taxes.